Artificial Intelligence (AI) and Semiconductors, which are on top of policymakers’ minds, have bagged the maximum financial boost as part of the IT and electronics ministry’s allocations in the recent Budget. This comes at a time when long-standing technology schemes such as Digital India and Unique Identification Authority of India or UIDAI (the tech stack powering Aadhar) have seen reduced allocation.
The Ministry of Electronics and IT (MeitY) has seen a 52 per cent rise in the Budgetary allocation in FY25, and around 60 per cent of this increase relates to money set aside for pet projects – IndiaAI Mission and Semiconductor mission. MeitY’s Budget allocation for FY25 stands at ₹21,937 crore relative to the revised estimate (RE) of ₹14,421 crore in FY24 and almost three times the actual expenditure of the department in FY23. Cybersecurity initiatives and PLI scheme are two other areas that grew allocation in FY25 relative to FY24 (RE) to the tune of 89 per cent and 36 per cent respectively.
IndiaAI mission, the ambitious ₹10,000-crore scheme, launched by the Centre to spur AI ecosystem, got its first allocation of ₹551 crore in this year’s Budget. Given its capital-intensive nature, the semiconductor programme’s allocation has grown by almost 4x in FY25 at ₹6,903 crore compared with FY24 (RE).
Key priorities ignored
Interestingly, two areas that have been mentioned as key priorities for coming years – Digital Public Infrastructure (DPI) and data protection – do not seem to have gotten the required financial boost, as per a reading of Budget documents. This is despite both the Budget and Economic Survey stressing on digitising land records and undertaking other DPI initiatives across areas of governance.
Tejashi Panjiar, associate policy counsel, Internet Freedom Foundation, says there is “a disconnect” between the conveyed priorities of the department and the allocations. “There is so much reference to DPI in the Economic Survey, but none of it is showing up in the Budget accounts,” she said. She also pointed out that the Data Protection Board has been allocated just ₹2 crore despite the data protection legislation being touted as a key focus of authorities. “However, given the rise in cybersecurity incidents, it seems the government has taken cognisance of the vulnerable cyber security health of this country,” she added.
Further, funds for other long-standing programmes such as Digital India, UIDAI have seen a dip. The actual spends under Digital India initiative was at ₹4,504 crore in FY22, ₹5,518 crore in FY23, and the RE of FY24 stands at ₹4,428 crore. The reduced spending and scaling down of the Digital India programme is particularly surprising given its success, analysts say.
Within Digital India, allocation for schemes promoting digital literacy has declined. Pradhan Mantri Gramin Digital Saksharta Abhiyan, a scheme to make rural India digitally literate, has not seen any allocation in FY25 and did not see any actual spends in FY24. Similarly, the head ‘promotion of digital payments’ has also seen NIL allocation in FY25 compared with ₹584 crore in FY24 (RE). “The reality is that India is not yet fully digitally literate, and the only way to improve digital literacy is by undertaking digital literacy programmes, which require funds,” says Panjiar.
The author was an intern with businessline
